| |
DTN Midday Grain Comments 01/25 11:01
All Grains Higher at Midday
Corn is 8 to 10 cents higher, soybeans are 33 to 35 cents higher, and wheat
is 7 to 10 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 290. The dollar index is
26 higher. Interest rate products are firmer. Energies are mixed with crude
down $0.30. Livestock trade is mostly lower. Precious metals are weaker with
gold down $7.50.
CORN
Corn trade is 8 to 10 cents higher at midday with overnight losses giving
way to broad strength during the day session with support from the soybean
bounce. Ethanol margins will remain poor with soft demand, but the pull back in
cash values will offer some relief short term. Basis has remained fairly
sideways with movement to be limited by the winter storm to start the week.
Weekly export inspections were strong at 1.391 million metric tons. On the
March contract support is the 20-day at $4.98 that we are tested overnight,
with the next level up the old gap area at $5.17.
SOYBEANS
Soybeans are 33 to 35 cents higher at midday with trade bouncing off a test
of the $13.00 level overnight with spread action firming slightly. Meal is
$10.50 to $11.50 higher and oil is 110 to 120 points higher. Basis will likely
remain flat with slower movement and a bigger focus on crush margins. Brazil
should catch rains short term with very early harvest underway, with Argentina
action mixed with temps cooling off for both. Weekly export inspections remain
strong at 1.979 million metric tons. The March chart has support at the fresh
low of $12.98 with resistance the 20-day at $13.48. #_msocom_1 WHEAT
Wheat trade is 7 to 10 cents higher at midday with trade following the row
crops higher after early weakness. The dollar remains above 90 on the index,
and squarely in the middle of the recent range. The plains should see some
benefit from the winter storm sweeping through on snow cover and moisture.
Russian farmers are petitioning against export taxes as well. KC is at 22-cent
discount to Chicago with the pattern of narrower overnight trade continuing,
with Minneapolis at -23. Weekly export inspections improved at 523,091 metric
tons. KC March chart support is the 20-day at $6.11, and resistance is the
upper Bollinger Band at $6.51.
******************************************************************************
#_msoanchor_1
(c) Copyright 2021 DTN, LLC. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot.
|
|
